I committed fraud with FTX founder, ex-girlfriend tells trial
The Guardian|October 11, 2023
Caroline Ellison, the former chief executive of Sam Bankman-Fried's hedge fund Alameda Research, testified yesterday that she committed fraud together with the former crypto mogul.
Victoria Bekiempis
I committed fraud with FTX founder, ex-girlfriend tells trial

Ellison, who said she previously dated Bankman-Fried, is one of three former members of the 31-year-old former billionaire's inner circle who have pleaded guilty to fraud charges and agreed to cooperate with the Manhattan US attorney's office.

"Alameda took several billion dollars of money from FTX customers and used it for our own investments and to repay debts that we had," Ellison said.

She said Bankman-Fried directed Alameda to take about $10bn (£8bn) in FTX customer money to repay loans and he told her to share with the fund's lenders a misleading Alameda balance sheet that made its finances look less risky than was the case.

Prosecutors allege BankmanFried and those in his inner circle used money from FTX customers for Alameda's investments and trades, which led to an $8bn shortfall at FTX after the value of nearly all cryptocurrencies plummeted last year.

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